Raisio warns of weaker 2005 results
estimated due to write-downs of its malt, potato and food
The maker of Benecol cholesterol-lowering plant stanols said today that assets related to its malt and potato businesses were reevaluated due to the prolonged poor market outlook and written down by €8.4 million and €7.5 million respectively.
In addition, good will related to some of its food diagnostics products will be written down by €5.1 million due to weakened market outlook.
The performance of Benecol was not mentioned in the announcement. Now with 14 licensees and products sold in some 30 countries, Raisio reported Benecol-ingredient turnover of €44.7 million in 2004 and previously said it has seen about 20 percent growth this year.
Raisio's financial results for fiscal 2005 are expected on February 9, and operating profit is estimated to be in the region of €9 million. This was further impacted by the booking of €18.3 million non-recurring items throughout the fixture.
This month Raisio began marketing its new soy and oat-based fresh products produced at the new plant in Turku, under the name GoGreen. The start-up costs related to this venture are also expected to impact operating profit.